Discounted Cash Flow (DCF) Analysis Levered
Northern Trust Corporation (NTRS)
$97.49
-0.68 (-0.69%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 4,706.90 | 5,220.80 | 5,298.60 | 5,337.70 | 6,464.50 | 7,018.13 | 7,619.16 | 8,271.68 | 8,980.07 | 9,749.13 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,720.40 | 1,767.50 | 2,592 | 1,896.80 | 1,356 | 2,468.08 | 2,679.45 | 2,908.92 | 3,158.04 | 3,428.50 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -472.80 | -506 | -599.80 | -560.40 | -515.10 | -695.13 | -754.66 | -819.29 | -889.46 | -965.63 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,247.60 | 1,261.50 | 1,992.20 | 1,336.40 | 840.90 | 1,772.95 | 1,924.79 | 2,089.63 | 2,268.59 | 2,462.87 |
Weighted Average Cost Of Capital
| Share price | $ 97.49 |
|---|---|
| Beta | 1.077 |
| Diluted Shares Outstanding | 209.01 |
| Cost of Debt | |
| Tax Rate | 23.12 |
| After-tax Cost of Debt | 0.23% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.704 |
| Total Debt | 7,898.10 |
| Total Equity | 20,376.19 |
| Total Capital | 28,274.29 |
| Debt Weighting | 27.93 |
| Equity Weighting | 72.07 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 4,706.90 | 5,220.80 | 5,298.60 | 5,337.70 | 6,464.50 | 7,018.13 | 7,619.16 | 8,271.68 | 8,980.07 | 9,749.13 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,720.40 | 1,767.50 | 2,592 | 1,896.80 | 1,356 | 2,468.08 | 2,679.45 | 2,908.92 | 3,158.04 | 3,428.50 |
| Capital Expenditure | -472.80 | -506 | -599.80 | -560.40 | -515.10 | -695.13 | -754.66 | -819.29 | -889.46 | -965.63 |
| Free Cash Flow | 1,247.60 | 1,261.50 | 1,992.20 | 1,336.40 | 840.90 | 1,772.95 | 1,924.79 | 2,089.63 | 2,268.59 | 2,462.87 |
| WACC | ||||||||||
| PV LFCF | 1,226.07 | 1,251.72 | 1,277.90 | 1,304.62 | 1,331.91 | |||||
| SUM PV LFCF | 8,692.31 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.34 |
| Free cash flow (t + 1) | 2,512.13 |
| Terminal Value | 57,883.13 |
| Present Value of Terminal Value | 42,566.58 |
Intrinsic Value
| Enterprise Value | 51,258.89 |
|---|---|
| Net Debt | -61,690.30 |
| Equity Value | 112,949.19 |
| Shares Outstanding | 209.01 |
| Equity Value Per Share | 540.41 |